Interim Results
Witan Inv Tst PLC
27 July 2001
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27 July 2001
WITAN INVESTMENT TRUST PLC
Unaudited Interim Results for the Half Year ended 30 June 2001
Financial Highlights (per ordinary share)+
(Restated*) (Audited and
Half year Half year ended restated*)
ended 30 June 2000 Year ended
30 June 2001 31 December 2000
pence pence pence
Net asset value 484.2 566.7 521.5
Earnings 5.13 4.53 8.95
Dividends 3.60 3.50 7.75
Performance (per ordinary share)+
6 months 12 months
base 100 base 100
Net asset value 92.85 85.44
Share price 92.57 92.28
Benchmark (i) 92.89 88.55
(i) The benchmark comprises the FTSE All-Share Index and the FTSE World
(ex UK) Index in the proportion 60:40 (capital change only).
Dividend
An interim dividend of 3.60p (2000: 3.50p) per ordinary share will be paid on
7 September 2001 to shareholders registered on 17 August 2001. The
ex-dividend date will be 15 August 2001.
+ Unaudited
* Restated for the change in accounting policy (see note 2)
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WITAN INVESTMENT TRUST PLC
Unaudited Interim Results for the Half Year ended 30 June 2001
Chairman's Statement
The steam has gone out of markets worldwide as future corporate earnings
prospects are reined back. To a certain extent this was not unexpected
although the intensity of the market revaluation, particularly of the
telephone and technology sectors on the way up, as well as now on the way
down, shows about as much investor subtlety as one might expect from a
gorilla let loose on a Stradivarius.
As mentioned in the last Annual Report, which incidentally again won the
accolade of best generalist annual report from the Association of Investment
Trust Companies, we mentioned the steps we had taken to try to protect
investors against any market set-back. These consisted of a judicious mix of
marketing, share redemption and the use of absolute return funds, rather than
increasing liquidity, as we felt that the market correction was unlikely to
be big enough to allow us a full turning circle. The effect of our actions so
far has led to the virtual halving of our market discount (i.e. 8.6% versus
15.4%) since this time last year, and this has gone some way to relieve the
full financial pain to shareholders doled out by stockmarkets and by our own
underperformance of benchmark over that period.
Our change in accounting policy set out to shareholders at the end of last
year has relieved the pressure on our income account and gives us the
ability, without dipping into revenue reserve, to increase the interim
payment to shareholders by a modest amount (2.86%).
We expect further consolidation of stock market values over the rest of the
year, but we do not believe the downturn in economic activity will worsen
significantly, although it may take longer to rebuild confidence and
profitability to the levels seen two or three years ago. By the time of our
next Annual General Meeting on 12 March 2002 at the RHS Hall, to which by
popular consent we will be returning, the outlook will be clearer.
Lord Faringdon
26 July 2001
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WITAN INVESTMENT TRUST PLC
Unaudited Interim Results for the Half Year ended 30 June 2001
Statement of Total Return (incorporating the revenue account)
for the half year ended 30 June 2001
(Unaudited) (Unaudited and restated*)
Half year ended Half year ended
30 June 2001 30 June 2000
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Total - (131,919) (131,919) - 13,607 13,607
capital
(losses)/gains
from
investments
Income from 20,939 - 20,939 19,564 - 19,564
investments
Other 1,512 - 1,512 810 - 810
interest
receivable
and similar
income
-------- -------- --------- --------- --------- ---------
Gross 22,451 (131,919) (109,468) 20,374 13,607 33,981
revenue and
capital
(losses)/
gains
Management (509) (1,526) (2,035) (563) (1,689) (2,252)
fee
Other (1,336) - (1,336) (1,206) - (1,206)
administrative
expenses
-------- -------- --------- --------- --------- ---------
Net
return/(loss)
on
ordinary
activities
before 20,606 (133,445) (112,839) 18,605 11,918 30,523
interest
payable and
taxation
Interest (1,263) (3,792) (5,055) (505) (1,516) (2,021)
payable
-------- -------- --------- --------- --------- ---------
Net
return/(loss)
on
ordinary
activities
before 19,343 (137,237) (117,894) 18,100 10,402 28,502
taxation
Taxation on (1,261) 681 (580) (1,463) 705 (758)
net return
on ordinary
activities
-------- -------- --------- --------- --------- ---------
Net
return/(loss)
on
ordinary
activities
after 18,082 (136,556) (118,474) 16,637 11,107 27,744
taxation
Dividends - (42) - (42) (42) - (42)
preference
shares
-------- -------- --------- --------- --------- ---------
Available 18,040 (136,556) (118,516) 16,595 11,107 27,702
for
ordinary
shareholders
-------- -------- --------- --------- --------- ---------
Dividends -
ordinary
shares
Interim (12,661) - (12,661) (12,703) - (12,703)
payment of
3.60p
(2000:
3.50p)
Final 2000: - - - - - -
4.25p
-------- -------- --------- --------- --------- ---------
(12,661) - (12,661) (12,703) - (12,703)
-------- -------- --------- --------- --------- ---------
Transfer 5,379 (136,556) (131,177) 3,892 11,107 14,999
to/(from)
reserves
====== ====== ====== ====== ====== ======
Return/(loss) 5.13p (38.83)p (33.70)p 4.53p 3.03p 7.56p
per
ordinary
share (note
1)
====== ====== ====== ====== ====== ======
(Audited and restated*)
Year ended
31 December 2000
Revenue Capital Total
£'000 £'000 £'000
Total capital (losses)/gains from - (153,837) (153,837)
investments
Income from investments 37,827 - 37,827
Other interest receivable and 1,965 - 1,965
similar income
---------- ---------- ----------
Gross revenue and capital 39,792 (153,837) (114,045)
(losses)/gains
Management fee (978) (2,935) (3,913)
Other administrative expenses (2,460) - (2,460)
---------- ---------- ----------
Net return/(loss) on ordinary
activities
before interest payable and 36,354 (156,772) (120,418)
taxation
Interest payable (1,328) (3,983) (5,311)
---------- ---------- ----------
Net return/(loss) on ordinary
activities
before taxation 35,026 (160,755) (125,729)
Taxation on net return on (2,485) 1,522 (963)
ordinary activities
---------- ---------- ----------
Net return/(loss) on ordinary
activities
after taxation 32,541 (159,233) (126,692)
Dividends - preference shares (83) - (83)
---------- ---------- ----------
Available for ordinary 32,458 (159,233) (126,775)
shareholders
---------- ---------- ----------
Dividends - ordinary shares
Interim payment of 3.60p (2000: (12,703) - (12,703)
3.50p)
Final 2000: 4.25p (14,947) - (14,947)
---------- ---------- ----------
(27,650) - (27,650)
---------- ---------- ----------
Transfer to/(from) reserves 4,808 (159,233) (154,425)
====== ====== ======
Return/(loss) per ordinary share 8.95p (43.92)p (34.97)p
(note 1)
===== ====== ======
The revenue columns of this statement represent the revenue accounts of the
Company.
*Restated for the change in accounting policy (see note 2).
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WITAN INVESTMENT TRUST PLC
Unaudited Interim Results for the Half Year ended 30 June 2001
Balance Sheet
at 30 June 2001
(Unaudited) (Unaudited and (Audited and
30 June 2001 restated*) restated*)
£'000 30 June 2000 31 December 2000
£'000 £'000
Investment assets
Quoted in the United 1,009,374 1,100,686 1,119,159
Kingdom (at market
value)
Quoted abroad (at 763,763 932,961 773,638
market value)
Unquoted (at 38,976 29,178 30,217
directors' valuation)
------------- ------------ ------------
1,812,113 2,062,825 1,923,014
------------- ------------ ------------
Current assets
Debtors 15,712 20,834 6,081
Cash at bank and 53,291 53,873 69,657
short term deposits
------------- ------------ ------------
69,003 74,707 75,738
Creditors : amounts (31,552) (25,659) (18,065)
falling due within
one year
------------- ------------ ------------
Net current assets 37,451 49,048 57,673
------------- ------------ ------------
Total assets less 1,849,564 2,111,873 1,980,687
current liabilities
Creditors: amounts (144,057) (46,000) (144,003)
falling due after
more
than one year
Provisions for - (25) -
liabilities and
charges
------------ ------------ ------------
Net assets 1,705,507 2,065,848 1,836,684
======== ======== ========
Capital and reserves
Called-up share capital
Preference shares 2,555 2,555 2,555
Ordinary shares 87,921 91,015 87,921
Share premium 16,237 16,237 16,237
Other reserves
Redemption reserve 5,905 2,811 5,905
Capital reserve 1,128,080 1,127,792 1,122,387
- realised
Capital reserve 441,295 808,219 583,544
- unrealised
Revenue reserve 23,514 17,219 18,135
------------ ------------ ------------
Shareholders' funds 1,705,507 2,065,848 1,836,684
======== ======== ========
Net asset value per 484.2p 566.7p 521.5p
ordinary share
======== ======== ========
* Restated for the change in accounting policy (see note 2)
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WITAN INVESTMENT TRUST PLC
Unaudited Interim Results for the Half Year ended 30 June 2001
Cash Flow Statement
for the half year ended 30 June 2001
(Unaudited) (Unaudited and (Audited and
restated*) restated*)
Half year ended Half year ended Year ended
30 June 2001 30 June 2000 31 December
2000
£'000 £'000 £'000
Net cash inflow from 18,398 15,076 30,478
operating activities
Net cash outflow from (5,074) (2,064) (5,122)
servicing of finance
Net tax recovered 392 156 1,023
Net cash (14,550) 80,988 58,762
(outflow)/inflow from
financial investment
Equity dividends paid (14,947) (15,045) (27,787)
Management of liquid (15,000) (15,000) (20,000)
resources
------------ ------------ ------------
Net cash (30,781) 64,111 37,354
(outflow)/inflow
before financing
Net cash (56) (34,616) 3,714
(outflow)/inflow from
financing
------------ ------------ ------------
(Decrease)/increase in (30,837) 29,495 41,068
cash
------------ ------------ ------------
Reconciliation of operating revenue to net cash inflow from operating
activities
Net revenue before 20,606 18,605 36,354
interest payable and
taxation
Decrease/(increase) in 623 (157) (148)
accrued income
(Increase)/decrease in (22) 259 315
debtors
Decrease in creditors (176) (491) (551)
Expenses charged to (1,526) (1,689) (2,935)
capital
Tax deducted at source (982) (1,427) (1,708)
Scrip dividends (125) (24) (849)
included in investment
income
------------ ------------ ------------
18,398 15,076 30,478
------------ ------------ ------------
Reconciliation of net cash flow to movement in net (debt)/funds
(Decrease)/increase in (30,837) 29,495 41,068
cash
Cash outflow from 15,000 15,000 20,000
management of liquid
resources
Cash outflow/(inflow) 56 - (98,070)
from debt financing
------------ ------------ ------------
Change in net (15,781) 44,495 (37,002)
(debt)/funds resulting
from cash flows
Exchange movements (529) (275) (1,064)
(Increase)/decrease in (110) - 67
valuation of debt
------------ ------------ ------------
Movement in net (16,420) 44,220 (37,999)
(debt)/funds in the
period
Net debt at the (74,346) (36,347) (36,347)
beginning of the period
------------ ------------ ------------
Net (debt)/funds at (90,766) 7,873 (74,346)
the end of the period
------------ ------------ ------------
Represented by:
Bank balances and 53,291 53,873 69,657
short term deposits
Debt falling due after (144,057) (46,000) (144,003)
more than one year
------------ ------------ ------------
(90,766) 7,873 (74,346)
------------ ------------ ------------
*Restated for the change in accounting policy (see note 2).
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WITAN INVESTMENT TRUST PLC
Unaudited Interim Results for the Half Year ended 30 June 2001
Notes
1. Return/(loss) per ordinary share
Revenue return per ordinary share is calculated by dividing the net revenue
return available for ordinary shareholders of £18,040,000 (half year ended 30
June 2000: £16,595,000 as restated; year ended 31 December 2000: £32,458,000
as restated) by the 351,682,244 (half year ended 30 June 2000: 366,527,642;
year ended 31 December 2000: 362,573,612) weighted average number of ordinary
shares in issue.
Capital return per ordinary share is calculated by dividing the net capital
losses of £136,556,000 (half year ended 30 June 2000: net gains of
£11,107,000 as restated; year ended 31 December 2000: net losses of
£159,233,000 as restated) by the weighted average number of ordinary shares
in issue, as stated above.
2. Change in accounting policy
With effect from 1 January 2001 investment management fees and interest
payable, which previously were charged wholly to the revenue account, are
allocated 25% to revenue and 75% to capital. The comparative figures for the
half year ended 30 June 2000 and the year ended 31 December 2000 have been
restated accordingly. The effect of this change is that the net revenue on
ordinary activities after taxation for the two periods is increased by
£2,500,000 and £5,396,000 respectively.
3. Issue share capital
At 30 June 2001 there were 351,682,244 ordinary shares in issue (30 June
2000: 364,058,094; 31 December 2000: 351,682,244).
4. Dividend
The directors have declared an interim dividend of 3.60p (2000: 3.50p) per
ordinary share payable on 7 September 2001 to shareholders registered on 17
August 2001. The shares will be quoted ex-dividend on 15 August 2001.
5. Interim accounts
The interim accounts have been neither audited nor reviewed by the auditors.
6. Comparative information
The figures and financial information for the year ended 31 December 2000 are
extracted from the latest published accounts and do not constitute statutory
accounts for that year. Those accounts have been delivered to the Registrar
of Companies and included the report of the auditors which was unqualified
and did not contain a statement under either section 237(2) or 237(3) of the
Companies Act 1985.
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WITAN INVESTMENT TRUST PLC
Unaudited Interim Results for the Half Year ended 30 June 2001
7. Interim Report
The interim report will be sent to shareholders in August 2001 and copies
will be available thereafter from the Secretary at the Company's registered
office, 4 Broadgate, London EC2M 2DA.
-ENDS-
For further information, please contact:
James Robinson
Witan Investment Trust plc
Tel: 020 7410 4312
James Budden
Witan Investment Trust plc
Tel: 020 7410 3121
Gordon Puckey
Quill Communications
Tel: 020 7618 8905
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